Northern Lion Gold Corp.

Northern Lion Gold Corp.

March 17, 2010 11:30 ET

Northern Lion Locates Positive Drill Data on Cyprus Copper-Gold Enriched VHMS Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2010) - Northern Lion Gold Corp. (the "Company" or "Northern Lion") (TSX VENTURE:NL)(FRANKFURT:N3E) wishes to provide this update on the 2010 exploration programs commencing on the permits in Cyprus.

The Republic of Cyprus

Phase I exploration in Cyprus has commenced on the Philani and Kokkinovounaros (Red Hill) projects. This work includes detailed mapping, soil and rock geochemical sampling, Induced Polarization ("IP") and magnetic surveys to generate diamond drill targets. 

At Red Hill some pre-WWII gold workings focused on a substantial gossan covering the peak of a small hill. The data compilation program has located geological mapping, geophysical survey data and historical drill logs from both the Geological Survey and the Hellenic Mining Company which are located within the present permit controlled by Northern Lion.

In the 1950's Hellenic Mining acquired this area under an exploration permit due to the presence of the Red Hill gossan. Through a combination of geological, geochemical and geophysical surveys they identified a massive pyrite body (Kambia Mine) approximately 500m to the northwest of Red Hill. This became their main focus of attention and ultimately produced 330,000 tons of pyrite. It contained a copper rich zone along the northwest edge of the main body of pyrite, which appears to be controlled by a major northwest trending structure. A strong northerly trending structure is visible in the open cut workings at the Red Hill gossan, which is located at the intersection of these two linears. No work appears to have been done to test the extensions of the northerly trending structure.

During this period five holes were drilled on the Red Hill workings over a 125m strike length and analysed for gold, all of which assayed over 1 gram per tonne ("g/t") for the entire hole to a maximum depth of 50m below surface. No other holes drilled in the area by Hellenic Mining Company or the Geological Survey were analysed for gold. Additional significant results from this area include 143m of 0.4% copper to the south of Red Hill and 40m of 1% copper in a hole to the northwest of the open pit.

Detailed mapping and soil sampling are currently underway on the areas to the north and south of the Red Hill gossan, which will be followed up with an IP and magnetic geophysical survey. Drill testing of the gold target at Red Hill will be undertaken once a drill has been mobilized into the country.

On Philani the target is a partially defined orebody of high grade copper and zinc massive sulphide mineralization with significant gold values (this resource predates National Instrument 43-101 ("NI 43-101") and was not prepared in accordance with its requirements). Northern Lion's previous surface sampling returned over 4g/t gold from a gossan located peripheral to the massive sulphide body. The current mapping has shown the anomalous gossan to be one of a series located along a northwest trend, none of which had been previously tested.

Research in the files of the Cyprus Geological Survey has uncovered historical drill data that indicates a hole located to the west of the massive sulphide body that appears to intersect a feeder zone. This hole encountered 24m of 0.4% copper, but was not analysed for gold. It is also proximal to the 4g/t gold assay from the surface gossan.

There are currently no diamond drill rigs in the Republic of Cyprus and so the Company has entered into discussions with a Canadian drill company to ship all the necessary equipment for the forthcoming drill program.

The following table contains a summary of the significant values returned from samples collected during previous evaluations. The results of that work clearly illustrate the potential of the Cyprus type massive sulphide bodies to host significant gold mineralization along with high grade copper, zinc and silver.

Sample # Sample type Au g/t Cu % Pb % Zn % Ag g/t
PH27 10-11m drill chips 0.334 1.667 0.013 0.7 4.1
PH28 11-12m drill chips 2.184 7.364 0.2668 7.15 67
PH29 12-14m drill chips 1.637 8.043 0.1134 13.38 43.1
PH30 14-16m drill chips 1.156 6.568 0.0807 17.59 36
PH5 Grab 4.046 0.5999 0.0553 0.2343 >100.0

The average grade for the 10 – 16m interval in this hole is 6.4% copper, 11.6% zinc, 1.4g/t gold and 38g/t silver.

The history of mineral exploitation (copper, gold and other metals) on the island of Cyprus dates back to the Bronze Age, approximately 5,000 years ago. The Phoenicians were the first to process copper on the island, followed by the Romans and this activity has continued to the present day. The evidence of this long history of mining is readily observed in the abundant ancient surface and underground workings along with extensive slag heaps. Mineral exploration in the Republic of Cyprus has been at a very low level over the last few decades, and management believes that there is a high probability of additional massive sulphide bodies being present that did not outcrop, as nearly all of the known deposits did.

The metal deposits of Cyprus are dominantly copper-bearing volcanogenic hosted massive sulphide ("VHMS") deposits. These deposits are hosted within the pillow lava sequence of the Troodos Ophiolite Complex. The pillow lava sequence is divided into Upper and Lower Pillow Lavas, with the majority of massive sulphide bodies located along the contact between pillow lava sequences, and the remainder between the Lower Pillow Lavas and the Basal Group. All of the Company's applications overlie these important contacts. Gold mineralization associated with the massive sulphide ores has not historically been evaluated.

Moura Project, Portugal

The Moura Licence is approximately 187 square kilometres and is located 180 kilometres eastsoutheast of Lisbon. The licence encompasses two deposits (Enfermarias and Preguica), and 11 known mineral occurrences, within a 25 kilometre long lead-zinc-silver belt. The mineralization is strata-bound and is hosted by Lower Paleozoic carbonates within the Ossa – Morena Zone of the Iberian Hercynian Orogen. The Moura area has an extensive exploration history commencing in the 1940's, with the majority of the work being completed before 1980.

Northern Lion is initiating a geophysical survey combining IP and Ground Magnetics. The survey will initially cover two areas of interest that display zinc and copper geochemical soil anomalies, neither geophysical surveys nor drilling has been completed within these areas previously. Based on the success of the geophysical survey drill targets will be selected for testing.

Quality Control and Assurance

The Company's field activities in Cyprus are to be supervised by Dr. Kyriacos Louca, under the direction of Jim Chapman, P.Geo. (BC), and the Moura programs are under the supervision of Joan McCorquodale, P. Geo. (BC), consultants to the Company and "qualified persons", as defined by NI 43-101, who are responsible for the technical content of this news release.

About Northern Lion

Northern Lion Gold Corp. is a Canadian mineral exploration company, listed on the TSX Venture Exchange and the Frankfurt Exchange. The Company is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Europe. The Company is well funded to continue to define and explore its existing projects and to acquire and explore new projects.

In addition to its exploration permits in Cyprus and 100% interest in its Moura Licence in Portugal, the Company holds a 100% interest in several projects in the historic Bergslagen mining district of southern Sweden.


John Lando, President

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and, except as required by law, the Company is under no obligation to update or alter any forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release

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